The Emporia weekly news. [volume] (Emporia, Kan.) 1881-1889, 1887-09-08
quisitfve Avoca girl, whom he killed a
few years later.



were explained by facts which wert
made public late this afternoon. After
breaking OFF his negotiations with Ives
s. Co., Mr.. Garrett went to London
Z where the negotiations were continued
with J. s. Morgan and to-day deal
was announced comparable in import
ance with the West Shores attendant
with the New York Central, and the
4 formation of the Reading syndicate to
reorganiZe that company. Both OF
these dealings were carried through by
ter case Edward Lautterbach was the
most prominent figure as a
mediator between the Gowen and
DrexeI interests, and in the agreement
now made, he also takes prominent
place. The contamination of the con-
tract made to-day was held in allegiance
until his opinion was obtained upon
the question of whether the sterling
loan made by the Baltimore & Ohio
Railroad covered the telegraph system
| of the company. After studying the
question in all its aspects, he decided
that the telegraph lines were free from
all lines, and on receiving this opinion
the agreement in the nature OF pre-
liminary contract was executed to-day.
The parties to the contract are the Bal
timore & Ohio Railroad Company and
syndicate composed of j. s. Morgan
s. Co., Barring Brothers s. Co., Kdder,
Peabody s. Co., Brown, SIMPLIFY
s. Co., of London, DreXel
Morgan & Co. and Brown Bros. y Co.
of this city, and Drexel s. Co. of Phila-
delphia. The most important part in
the contract provides that the manage
ment Of the company shall be placed
in competent hands, satisfactory to
the syndicate. Who the men are, who
will be satisfactory to the syndicate
cannot be ascertained, but A. j.
Cossett, the Vice President of the
generally believed to be booked as Mr..
| Garrett successor. Satisfactory con-
tracts are also to be made with the
| Pennsylvania and Reading Railroads
| on all business north of Philadelphia
with all the other trunk lines entering
New York by which all antagonism
will be removed and insure the per-
manent working of the Baltimore &
Ohio in harmony with the other trunk
| lines. In addition to these contracts
| the lines in process of construction
| from Philadelphia to New York will
be suspended in their construction
just as they now stand and
the work on Staten Island stopped. In
consideration of these contracts being
signed and with the control in their
hands, the syndicate agree to relieve
the railroad from its present embar-
rassment by providing SIC, OOO, 600 with
which to take up the following debt. |
This will be represented by 5000, 900
in Baltimore s. Ohio consolidated lives
floating debt as it stands amounts to |
81 600, GOO, mostly in the shape of GER
tificates of Indebtedness, scrips and |
notes. OF this amount $4,000, 900 Is |
said to have matured on the Ist in
slant. One of the parties of the syndi-l
cate authorized the following state |
ment as the outcome of the con-
tract t%a3e he 6 BSSitiOn R of 6na Bal
an Ishmaelite in the railroad,
sleeping car, express and telegraph |
business is given up. ALI the outside |
enterprises will be sold to parties to |
whom they will be valuable. The /
Western Union will control If it does /
not buy the telegraph lines; and the |
Pullman Palace Car Company Will take
the sleeping car business. The express |
business has already gone to the United |
States Express Company. The affairs /
of the railroad company will be entirely |
recognized and placed upon sound |
financial basis"
Drexel, Morgan s. Co. were in cores |
pOndence all day with their houses In |
London and Philadelphia and late in
the evening confirmed the statement |
that the contracts and negotiations
given above had been just signed.
Outside of the facts given above they
decline to speak. The clause of the
contracts suspending all work on the
extension from Philadelphia to New
York is believed to be the key note of
negotiations and considered to mean
that the Baltimore 81 Ohio Rail-
road, when Invested of all extraneOus
enterprises will be operated practically
by the Pennsylvania Railroad. The
following has been issued by the firm
of Drexel, Morgan & Co.: "A prelime
mary contract has been executed to-
day between the Baltimore s. Ohio
Railroad Company, Barring Bros. s. Co.
and Brown, Shipley 8 Co., London, and
allied houses on this side. This con-
tract provides for the negotiation of
IS 900, 600 of Baltimore & Ohio CONSOLE
dated fives; S5, 600 900 of Baltimore s.
Ohio preferred stock, for the purpose of
paying off the entire floating debt of
financial basis. The conditions are as
| follows:
First. The veriication of state
ments, etc., as made.
Second.-That the management OF
the company shall be placed in compe-
tent hands, satisfactory to the syndi-
cate.
Third.-That satisfactory contracts
shall be made between the Baltimore &
Ohio and the other roads for New York
/ business, which shall remove all antag
onism between them on the subject and
| insure the permanent working of the
Baltimore s. Ohio in entire harmony
with the other trunk lines; also avoid
construction or threat of construction
of expensive parallel lines north
and east of Philadelphia. The houses
| interested on this side are DreXel,
| Morgan g. Co.. Drexel & Co., Brown
Bros, and Kidder, Peabody & Co.
| STOCKHOLDERS IN DARKNESS.
BALTIMORE, Sept. 2.-The stockhold-
eTs of the Baltimore & Ohio Railroad
Company profess to be greatly surprised
at the announcement that the affairs of
the company had virtually passed
into hands of an influential syndicate.
| Very few of those in a
position to know of the condition of
affairs are in the city, but those who
are, claim to know nothing of the deal
that has been or is likely to be made.
That the company is embarrassed is
generally believed, but no one seems to
be in position to know exactly how
matters stand. Vice president Spen
Ger and Attorney Cowen have evident
ly been left in the dark, but
there are many who believe
that Mr.. Garrett would gladly lay
down the reins of government and
give up control to any one who could
steer clear of the entanglements in
which he is at present engaged. 1t is
generally believed that Mr.. Garrett has
entered into negotiotions that will re-
lIeve him of the responsibility or active
. management and will at the same time
! preserve the best interests OF the
Baltimore s. Ohio Company.
IeIa JuhIiant.